There really isn't anything wrong with the rotary. I've seen several go 200k+ without issues. This is a great engine and needs little to be perfect. I also do NOT see it as prone to lose compression.
The big problem is with lubrication. Mazda decided to condemn the rotary with motor oil injection. It would've been so much better to use a separate oil injection reservoir. But, I guess marketing got that best of that. Can't expect a consumer to have the sense to top off a separate special oil sump.
The 2nd problem is emissions. How much oil can you inject and expect a passing smog test for 150k miles, or whatever big brother expects these days? Run it oil lean and expect it too last?? Rotaries tend to have hotter exhaust temps. How long do you expect that catalytic to last? So, the engine runs for optimum A/F ratios and timing for catalytic life, along with A/F ratios and oil injection for emissions. Pig rich and no oil is a recipe for disaster.
Concerning owners driving style, rotaries should be driven hard, never taken on short trips, and always allowed to fully warm up after a start. With $4 per gallon gasoline, I cant believe the number of rotary owners trying to get good MPG. Yep, the ol' Italian tuneup, DAILY, would be a dream for all those babied engines.
It also doesn't help that Mazda has a relatively long OCI for those 1/2 oil changes. And, many rotary owners don't know how to use a dipstick.
OMCWankel explains the 'REAL' reason why his engine lost compression. He was buring 8 ounces of oil every 1000-2000 miles. If you see 20mpg(optimistically), thats 50-100 gallons of gas used. Anyone think 8 ounces per 50-100 gallons is acceptable? What was Mazda thinking? Or, could the oil injectors, or its pump, have been defective?
I also have my own issues with mixing rotaries with automatics. With the current shift tuning of automatics, I just don't see it as a good match.
Rotaries engine can fail with NO UOA warning. A simple spring failure losing its tension, and poof, no compression. A seal getting stuck in the housing, or simply falling out, and poof, no compression. Too bad this engine will be replaced by dealer under warranty. We will never know what part(s) failed and what caused them to fail.
How many ecu flashes has Mazda offered for the 8? how many years did it take them to 'supposedly' admit that additional oil injection duty cycle was needed? IMO, Mazda still has a long way to go.